PepsiCo UK announces 10 year plan to focus future profit and growth on healthier products

Launch of first Health Report sets out commitments to transform product portfolio to meet consumer demand for healthier products.

22 March 2010

PepsiCo UK today publishes its first Health Report, laying out its vision for 2020 - to be a business whose profit and growth will come from healthier products.

The food and drink company, whose current £1.5bn product range includes Walkers, Tropicana, Pepsi, Quaker and Copella, commits to renovating the core of its business, reshaping the savoury snack and soft drink categories, and focussing its future research and development on products with positive nutrition - including fruit, fibre, wholegrain, and vegetables.

Key pledges include:

  • 50% of savoury snacks will be baked or include positive nutrition by 2015
  • 65% of carbonated soft drink can and bottle sales will be 'no sugar' by 2015
  • A calorie cap of 160 Calories across single serve savoury snacks without positive nutrition by 2015
  • To deliver 1.8bn servings of fruit and vegetables and 1.7bn servings of wholegrain each year by 2012

The UK announcement follows an announcement earlier today by PepsiCo Global CEO Indra Nooyi of goals on nutrition, environmental sustainability and employee well-being. Among them are specific commitments for the business globally to increase the use of wholesome ingredients, such as whole grains, fruits and vegetables, and to reduce levels of sodium, saturates and added sugar in its products.

PepsiCo UK President Richard Evans said:

"In recent years, PepsiCo UK has responded to public health concerns by tackling the core of its business, reducing salt and saturated fat on crisps and snacks, and building strong no-sugar cola brands. We've achieved a great deal, but we're committed to going further.

Transforming the business won't be easy but the changes we propose are real and achievable. Our commitments go with the grain of where our consumers are going. I believe that companies like PepsiCo have a responsibility to lead change - and to be accountable for it."

For PepsiCo UK, the Health Report marks the latest step in the business's journey to become a healthier food and drink company.It has already taken significant steps along that journey: it acquired Tropicana in 1998 and Quaker in 2001; has been reducing salt in Walkers products by up to 55% since 2005; reduced saturated fat in Walkers crisps and snacks by up to 80% between 2005 and 2008; and launched healthier products with significantly lower salt, fat and sugar, or positive nutrition, such as Walkers Baked, SunBites, Tropicana Smoothies, Paw Ridge and Planet Lunch. No sugar soft drinks make up over 60% of Pepsi sales in the UK. Sales of Tropicana are almost three times those of regular Pepsi in the UK.

Other pledges in the Report include:

  • 60% of our total volume to be defined as healthier*, by 2015.

  • Invest 70% of R&D budget to deliver products defined as healthier*, from 2012.

  • All our Pepsi advertising supporting the growth of no-sugar or natural, from 2010.

  • 10% further reduction of salt on Walkers Crisps during 2009, and all crisps and snacks to meet or surpass existing FSA salt reduction targets by 2012.

  • 4% reduction in the sugar level of regular Pepsi by 2012, subject to consumer trials.

  • Launch, and take to scale, new children's lunchbox and breakfast ranges, meeting FSA Nutrient Profile model, by 2010.

  • Increase availability of Walkers Baked and Pepsi Max by 25% by 2012 for consumers on-the-go.

  • Encourage wider availability of no-sugar drinks in cinemas, theme parks and pubs, by 2012.

  • Work with government, and other stakeholders, to deliver pledges on portion sizes and retail availability of healthier products.

*Meets the FSA Nutrient Profile model, or other equivalent international standards.

Read the Health Report 2010.